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ChemOrbis 4th Turkey Petrochemical Conference: Iran preparing for post sanctions period with new capacities

by ChemOrbis Editorial Team -
  • 03/09/2015 (06:05)
Kambiz Mirkarimi, Commercial and Executive Manager of Jam Polypropylene Company said during his presentation at the ChemOrbis 4thTurkey Petrochemicals Conference in Istanbul on September 3, 2015 that Iran’s petrochemical sector is preparing for the post-sanctions period with new production capacities and targets to improve its trading activities. According to him, sanctions did not block the development of the petrochemical sector, but slowed down progress and imposed higher expenses.

Mirkarimi reported that Iran is planning to increase its shares of the world’s PE capacity to 6.7% by 2022 following the start up of new capacities totaling almost 3 million tons per year. For PP, meanwhile, the country is expected to launch 750,000 tons/year of new capacities by 2017, aiming to bring its share of global PP production to 2.3% by 2017 from 2% in 2012 and to 7.7% by 2022.

The country was also reported to have seen an upward trend in polyolefin exports between 2011 and 2014. Iran exported over 2 million tons of PE in 2014 compared to around 1.6 million tons in 2011. In 2014, the main export destination was China with around 1.37 million tons while China was followed by the UAE (277,000 tons), Turkey (171,000 tons) and India (27,500 tons) in the list of the main importers of Iranian products. PP exports, meanwhile, hit 162,000 tons in 2014, up from 55,000 tons in 2011. Turkey was the top importer ,with shipments reaching almost 82,000 tons.

“Iran is among the major PP suppliers of Turkey, which has a 25% share in Iran’s polyolefin exports, and is the 3rd largest PP buyer in the world. The two countries enjoy shared borders in one of the most important transit routes in the world. However, ongoing transportation issues at the Iran-Turkey border is a bottleneck to increasing the trade volume of commodities between the two countries and other challenges include slow progress in implementing the ECO trade agreement and the lack of any other significant tariff preferences between the two countries (as of 2014, customs duties on PE and PP from Iran were increased from 3% to 6.5% in Turkey),” said Mirkarimi.
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